AR HB1007

Establishes the Arkansas Capital Gains Reduction Act of 2013, exempting 100% of net capital gains from state income tax for qualifying sales of Arkansas property.

Defines "Arkansas property" as real property entirely within the state, tangible property held for at least one uninterrupted year, intangible property of entities headquartered in-state for at least one year, and stock or ownership interests in in-state entities held for at least one year.

Requires that the Arkansas property be acquired after July 1, 2013, and owned directly or indirectly by the taxpayer for more than one uninterrupted year before sale to qualify for the exemption.

Applies to net capital gains from corporations, C corporations, limited liability companies, partnerships, and other legal entities, whether owned directly or through pass-through entities.

Effective for tax years beginning on or after January 1, 2014; directs the Director of the Department of Finance and Administration to promulgate implementing rules.